Location: New Bedford, MA | Metro: Providence-Fall River, RI-MA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,620 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $522,528 | 0.4% | F |
| 3BR | $2,490 | $622,838 | 0.4% | F |
| 4BR | $3,160 | $922,232 | 0.34% | F |
| 5BR | $3,666 | $1,656,615 | 0.22% | F |
U.S. Census Bureau data (2024)
The ZIP code 02748, encompassing parts of Dartmouth and New Bedford, Massachusetts, within the HUD Metro FMR Area, presents itself as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR for ZIP 02748 is set at $1760, while the average market rent stands at $1616. This means that landlords participating in the Section 8 program can expect to receive a higher rent compared to what they would get in the open market, thereby ensuring steady and reliable cash flow.
The median home value in this area is $664,997, indicating a relatively stable housing market. The slight premium landlords receive through Section 8, coupled with the lower risk associated with government-backed rental assistance, makes this ZIP an ideal choice for securing predictable income streams. Landlords should note that while the market rent is slightly below the FMR, the overall stability and support provided by the Section 8 program make it a solid investment for those looking to minimize financial volatility.
ZIP 02748 does not present as an appreciation play, given the low price-cut share of 0.1%, which suggests little room for significant price increases. Additionally, the N/A-day Days on Market (DOM) indicates that properties do not typically sit idle for long periods, but this metric alone does not provide enough information to suggest rapid appreciation.
While the 25.7% renter share and median income of $97,361 could make ZIP 02748 a diversifier in a broader investment strategy, its primary role within a Section 8 portfolio remains as a cash-flow anchor. The median income figure suggests that there is a reasonable economic base supporting the demand for rental properties, even within the subsidized housing sector.
In conclusion, ZIP 02748 serves best as a cash-flow anchor due to the favorable spread between FMR and market rent, providing landlords with a secure and steady income source. This positioning aligns well with the conservative nature of the Section 8 program, offering a reliable investment option for those focused on long-term stability over short-term capital gains.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.